The Kick Out Bond 9

CAPITAL
PROTECTED
CAPITAL
AT RISK
APRIL 2015
The Kick Out
Bond 9
STRUCTURED INVESTMENTS
Warning: This Bond is not Capital Protected. If you invest in
this Bond you can lose some or all of the money you invest.
Merrion Solutions is a division of Merrion Stockbrokers Limited. Merrion Stockbrokers Limited is
regulated by the Central Bank of Ireland. Merrion Stockbrokers limited is a member of the Irish
Stock Exchange and the London Stock Exchange.
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The Kick Out Bond 9
Merrion Solutions is a division of
Merrion Stockbrokers Limited
developed with the needs and
objectives of Irish Financial Brokers
at the forefront of everything we do.
There are two strands to the business:
• We have developed an innovative Structured Investments business. Our Structured Investments
business provides Investment Solutions that empower Financial Brokers and their clients in navigating
a course from deposits back to normal investment portfolio construction.
• myfunds: We have created a Financial Broker friendly Stockbroking solution that combines Merrion’s
Investment Management and Stockbroking capability into one low cost, transparent and potentially
tax efficient offering.
For more information, please call (01) 2404188, email [email protected] or visit
www.merrionsolutions.com.
The Kick Out Bond 9
Merrion Structured Investments
Merrion Structured Investments is passionate about creating the leading and most innovative Investment Solutions in
the Irish market.
We will create a series of exciting new Investment Solutions for Financial Brokers and their clients each calendar
quarter.
Our Investment Strategies and Solutions are Research Driven. By combining the resources of Merrion Investment
Managers, Merrion Stockbrokers and other leading international investment experts, our Investment Solutions have a
strong economic and investment logic and represent international best practice in construction.
Merrion Structured Investments operates an Open Architecture platform i.e. we work with a broad range of Irish &
International Bank counterparties. We work with high quality investment grade counterparties when selecting partners
to provide Capital Protection or other Investment Risk Controlling or Reducing Mechanisms.
We will focus on providing Investment Solutions with liquidity. Where possible, we will create the provision for investors
to exit their investment prior to maturity should their circumstances change or if investment performance is higher or
lower than anticipated.
Our quarterly Investment Solutions will offer a choice of:
1. Investment Risk Levels: From 2 to 5.
2. Investment Objectives: Income, Capital Growth, Hedging Strategies etc.
3. Taxation Treatment: Deposit Interest Retention Tax (DIRT), Capital Gains Tax (CGT) and Income Taxable investments.
4. Asset Classes: Traditional Asset Classes such as equities, bonds and property and Alternative Asset Classes such as
commodities, currencies, inflation, interest rates etc.
5. Investment Techniques: Traditional Investment Techniques such as long only with Alternative Investment Techniques
such as short selling, arbitrage, relative performance etc.
Our Investment Solutions will be available to a broad range of investor types, all of whom can invest via our myfunds
accounts as follows:
• Personal Investors.
• Pension Schemes: Small Self Administered Pension Schemes and Insured Self Directed or Self Invested Plans.
• Post Retirement Plans: Self Administered ARFs & AMRFs and Insured Self Directed or Self Invested ARF &
AMRF Plans.
• Self Administered PRSAs.
• Companies, Credit Unions, Charities and other Not for Profit Organisations.
• Institutional Investors.
Our Philosophy is the implementation of International Best Practice in Structured Investment Techniques for
Financial Brokers and their investor clients in Ireland.
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The Kick Out Bond 9
1. Executive Summary of Indicative Terms
• The Kick Out Bond 9 (the Bond) is an innovative new Investment Solution designed for investors who wish to invest in a Structured
Investment Strategy that offers accelerated potential investment returns from relatively neutral equity market performance
and investors seeking a risk reducing mechanism to provide a degree of protection from normal stock market risk. The Bonds
are suitable as part of the process of constructing a genuinely diversified investment portfolio.
• The Investment Rationale for investing in Equities as a long term investment: Although investing in equities involves a degree of
investment risk and there will be volatile periods along the way, in the long term, equities tend to outperform other assets like bonds,
property, cash etc. By adopting a medium term approach, equity investors can mitigate the risks and short term volatility associated
with stock market investment while benefiting from the long term capital growth potential that stock markets can provide.
• There are 2 options to choose from in the Bond: The Index Option and the Stocks Option.
• The Underlying Investments of the Index Option are 4 of the largest stock market indices in the world as follows:
Eurostoxx 50 Index
S&P 500 Index
FTSE 100 Index
Nikkei 225 Index
• The Underlying Investments of the Stocks Option are the shares of 4 large companies selected by Merrion Stockbrokers Limited
as follows:
Allianz SE-REG
HSBC Holdings PLC
Philip Morris International Inc
Ford Motor Co
• Investors in the Bond have their Capital at Risk. This means that you may lose some or all of the capital invested in this Bond. Merrion
Solutions considers the Index Option to have a risk score of 4 (Prudent) and the Stocks Option to have a risk score of 5 (Balanced)
on its risk scale.
• Investors benefit from a Soft Capital Protection feature provided by Credit Suisse AG in the case of the Index Option and BNP Paribas
in the case of the Stocks Option.
- Investors in the Index Option will receive back their initial capital if none of the 4 indices has fallen by 40% or more at the Final
Valuation Date. If one or more of the 4 indices has fallen by 40% or more at the Final Valuation Date, investors will receive the
performance of the worst performing index no matter how much it has fallen.
- Investors in the Stocks Option will receive back their initial capital if none of the 4 shares has fallen by 40% or more at the Final
Valuation Date. If one or more of the 4 shares has fallen by 40% or more at the Final Valuation Date, investors will receive the
performance of the worst performing share no matter how much it has fallen.
• Investors in the Bond have the potential for early maturity and the following potential returns every 6 months:
- Investors in the Index Option benefit from a Potential Return of 6.30% every 6 months if all 4 Underlying Indices are above
their initial level.
- Investors in the Stocks Option benefit from a Potential Return of 14.50% every 6 months if all 4 Underlying Shares are above
95% of their initial level.
• The Bond has a 5 year term.
• The Index Option is in the form of a Preference Share linked to a Note issued by Credit Suisse AG. The Stocks Option is in the form of
a Preference Share linked to a Certificate issued by BNP Paribas Arbitrage Issuance B.V.
• The Index Option will be listed on the Luxembourg Stock Exchange. Daily liquidity will be provided to investors that wish to sell
the Index Option prior to maturity under normal market conditions and at the discretion of Credit Suisse International. The Stocks
Option will be listed on the Luxembourg Stock Exchange. Daily liquidity will be provided to investors that wish to sell the Stocks
Option prior to maturity under normal market conditions and at the discretion of BNP Paribas Arbitrage SNC.
• The Minimum Investment in each Bond Option is €25,000.
• The Closing Date for applications is is 5 June 2015..
• Taxation: Our understanding is that the potential returns will be subject to Capital Gains Tax (CGT) in the case of Personal Investors
and exempt from taxation in the case of Pension and Post Retirement Investors.
Warning: This document is provided for information purposes only and is not considered to be an assessment of the suitability
or appropriateness for any one investor or group of investors. The suitability or appropriateness of this product to your
investment objectives or risk profile should be discussed with your Financial Broker before any investment in this product is
made.
Warning: All of the terms outlined in this document are indicative and subject to change. The final terms will not be known
until 12 June 2015. Your Financial Broker will confirm the final terms in the Confirmation Certificate issued shortly after the
Issue Date on 19 June 2015. If the terms of the Bond have changed significantly on 12 June 2015 (i.e. the potential return
is less than 6% in the case of the Index Option or 12.5% in the case of the Stocks Option), your Financial Broker will contact
you again requesting a new instruction to proceed with the investment.
Disclaimer: This document has not been reviewed, approved or otherwise endorsed by Credit Suisse AG or BNP Paribas or
any of their affiliates and Credit Suisse AG and BNP Paribas accept no responsibility in relation to the accuracy, completeness
or adequacy of the information included herein. Nothing in this document should be considered to be a representation or
warranty by Credit Suisse AG or BNP Paribas to any person, including without limitation, any potential investor and any
member of the public, regarding whether investing in the product described herein is suitable or advisable for such person.
The Kick Out Bond 9
2. Description of the Kick Out Bond 9
The Bond is designed for investors who wish to invest in a Structured Investment Strategy that offers accelerated potential
investment returns from relatively neutral equity market performance and investors seeking a risk reducing mechanism
to provide a degree of protection from normal stock market risk. The Bond is suitable as part of the process of constructing
a genuinely diversified investment portfolio.
The Index Option of the Bond is in the form of 5 Year Preference shares linked to a Note issued under Credit Suisse AG’s
Structured Products Programme for the issuance of Notes, Certificate and Warrants. The Final Terms should be read
together with the Issuer’s Preference Share-Linked Securities Base Prospectus dated 5 December 2014 for the complete
terms and conditions of the Securities. Copies of the Base Prospectus are available from your Financial Broker on request.
The Stocks Option of the Bond is in the form of 5 Year Preference Shares linked to a Certificate issued by BNP Paribas
Arbitrage Issuance BV. The Preference Shares linked to the Certificates will be issued under the issuer’s Note, Warrant
and Certificate Programme by way of Final Terms or Pricing Supplement. Copies of the Programme’s base prospectus
dated 5 June 2014 and any supplements thereto are available from your Financial Broker on request.
2.1 Investment Rationale
The investment rationale for investing in Equities as a long term investment is as follows:
Although investing in equities involves a degree of investment risk and there will be volatile periods along the way, in the
long term, equities tend to outperform other assets like bonds, property, cash etc. By adopting a medium term approach,
equity investors can mitigate the risks and short term volatility associated with stock market investment while benefiting
from the long term capital growth potential that stock markets can provide.
Index Option
The Underlying Investments in the Index Option are as follows:
Eurostoxx 50 Index
The Eurostoxx 50 Index, Europe's leading Blue-chip index for the Eurozone, provides a Blue-chip representation of
supersector leaders in the Eurozone. The index covers 50 stocks from 12 Eurozone countries: Austria, Belgium,
Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain. The Eurostoxx
50 Index is licensed to financial institutions to serve as underlying for a wide range of investment products such as
Exchange Traded Funds (ETF), Futures and Options, and structured products worldwide.
Source: http://www.stoxx.com/indices/index_information.html?symbol=sx5e
S&P 500 Index
The S&P 500 Index is widely regarded as the best single gauge of large cap US equities. There is over USD5.14
trillion benchmarked to the index, with index assets comprising approximately USD1.6 trillion of this total. The index
includes 500 leading companies and captures approximately 80% coverage of available market capitalisation.
Source: http://eu.spindices.com/indices/equity/sp-500
FTSE 100 Index
The FTSE 100 Index comprises the 100 most highly capitalised blue chip companies listed on the London Stock
Exchange. It is used extensively as a basis for investment products, such as derivatives and exchange-traded funds.
Source: http://www.ftse.com/products/indices/uk
Nikkei 225 Index
The Nikkei Stock Average, the Nikkei 225 is used around the globe as the premier index of Japanese stocks. More
than 60 years have passed since the commencement of its calculation, which represents the history of Japanese
economy after the World War II. Because of the prominent nature of the index, many financial products linked to the
Nikkei 225 have been created are traded worldwide while the index has been sufficiently used as the indicator of
the movement of Japanese stock markets. The Nikkei 225 is a price-weighted equity index, which consists of 225
stocks in the 1st section of the Tokyo Stock Exchange.
Source: http://indexes.nikkei.co.jp/en/nkave/index/profile?idx=nk225
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The Kick Out Bond 9
Stocks Option
The Underlying Investments are chosen by Merrion Stockbrokers Limited using a 3 step process as follows:
Step 1: Stock Screening Step
There are 3 filters applied to a universe of all stocks in the Eurostoxx 50, FTSE 100 and S&P 100 indices as follows:
1. Valuation Filter: A ranking of the stocks from the 3 indices with the lowest valuation at the top (“cheapest” stocks) and
highest valuation at the bottom (“expensive” stocks), using P/E ratios as the measure of valuation.
2. Dividend Filter: A ranking of the stocks from the 3 indices with the highest yielding stocks at the top and the lowest yielding
stocks at the bottom.
3. Volatility Filter: A ranking of the stocks from the 3 indices with the lowest volatility stocks at the top and the highest volatility
stocks at the bottom using last 1 year volatility data as the measure of volatility.
A weighting of 33.33% is given to the score for each stock on each list. The stocks with the highest results are then presented
to Merrion’s Research team for review.
Step 2: Stock Selection
Merrion’s Research team reviews the stocks identified by this Stock Screening step and chooses its favoured stocks in order
to produce a final shortlist of Merrion’s favoured stocks.
Step 3: Investment Payoff Optimisation
The final shortlist of stocks is presented to some of the world’s largest investment banks in order to select the 4 stocks that
offer the most attractive returns for investors taking the payoff profile required into account.
The Underlying Investments in the Stocks Option are as follows:
Allianz SE-REG
Allianz is a global financial services and insurance cover provider with over 85 million clients in more than 70
countries. With revenues of €122 billion and operating profits of €10.4 billion, the company is among the largest
integrated financial services companies in the world. Allianz’s main business segments consist of three businesses;
Property/Casualty insurance (48% of operating profit), Life/Health insurance (29% of operating profit) and Asset
Management (23% of operating profit). The company has been a consistent generator of profits over the last
number of years with group operating profit fluctuation between €8-10 billion since 2010 while the board of directors
maintain an attractive dividend pay-out policy. Geographically, Germany is the company’s largest market (25% of
revenue) followed by Western and Southern Europe (33% of revenue) with Broker Markets (20% of revenue) and
Speciality Insurance (12% of revenue) also being significant contributors. With a market capitalisation of €75 billion,
Allianz is currently trading on a 2015 P/E ratio of 11.8x (2016: 11.6x) while also providing shareholders with a dividend
yield of 4.3%.
HSBC Holdings PLC
HSBC is one of the world’s leading banking institutions operating out of 6,100 offices in 73 countries and one that
has been in existence since 1865. The company services four main market segments; Commercial Banking, Global
Banking & Markets, Private Banking and Retail Banking and Wealth Management. HSBC’s global operations span
the globe with Asia being the largest market (37% of net revenue) given the bank’s origin’s in the region followed
by Europe (34% of net revenue). Both North America and Latin America have been areas where HSBC has been
more active in over recent decades with each countries making up in the region of 13% of group revenues. In the
company’s recent full year 2014 results announcement, HSBC reported a profit before tax of $18.6 billion (2013:
$22.5 billion) which was negatively impacted by several factors including UK customer redress charges, fines and
settlements. The bank does continue to maintain a strong capital position with a common equity tier one ratio of
10.9%. With a market capitalisation of £115 billion, HSBC is currently trading on a 2015 P/E ratio of 10.5x (2016:
10.0x) while also providing shareholders with a dividend yield of 5.9%.
The Kick Out Bond 9
Philip Morris International Inc
Philip Morris is a leading manufacturer of tobacco products, with a diverse portfolio that includes the world’s number
one selling brand, Marlboro. The company operates out of more than 180 different markets and owns the rights to
six of the top fifteen international tobacco brands and the company has a global market share of approximately
15.6% (28.6% ex China). In 2014, Philip Morris achieved revenue of $29.7 billion and an adjusted net profit of $7.9
billion. With all of the company’s business taking place outside of the US, there will be a significant negative financial
impact on the company in 2015 due to the strength of the US dollar. As a result, revenue in 2015 is forecast to
decline to $26.4 billion with a corresponding drop in adjusted net income to $6.6 billion. The company does have a
generally consistent and free cash flow positive business but it also maintains significant amounts of debt which
totalled $27.7 billion at the end of 2014. With a market capitalisation of $119 billion, Philip Morris is currently trading
on a 2015 P/E ratio of 18.2x (2016: 17.0x) while also providing shareholders with a dividend yield of 5.3%.
Ford Motor Co
Ford is a leading manufacturer of vehicles with a broad array of products and brands covering the car and truck
market. The company is principally exposed to the North American market which makes up 65% of the company’s
revenue stream (USA: 57%, Canada: 7%, Mexico 1%). Ford does have exposure to Europe and Asia but both regions
remain loss making for the firm and as a result, North America contributes 162% of the pre-tax income recorded
by Ford in 2014. Management at the company remain committed to the currently loss making markets and are
targeting a return to profitability for several areas but this will be dependent on macro-economic factors. Ford
maintains a solid balance sheet with net cash balances at the end of 2014 amounting to $5.3 billion and the company
is forecast to end 2015 with a net cash amount of $6.7 billion. With a market capitalisation of $63 billion, Ford is
currently trading on a 2015 P/E ratio of 10.1x (2016: 8.5x) while also providing shareholders with a dividend yield of
3.6%.
Source: David Holohan, Head of Research, Merrion Stockbrokers Limited, 9 February 2015
2.2 Who is the Bond suitable for?
• The Bond was designed for Investors with a neutral to mildly positive outlook for stock market performance and would
benefit from an accelerated level of capital growth in this positive but muted performance environment.
• Investors requiring a risk reducing mechanism to provide a degree of protection from normal stock market volatility
and risk.
• Investors seeking an investment subject to Capital Gains Tax (CGT) as an alternative to investments subject to Deposit
Interest Retention Tax (DIRT), Income Tax or Gross Roll Up Tax.
• The Bond is a suitable investment as part of the process of constructing a genuinely diversified investment portfolio.
Investors seeking the potential for Capital Growth
Investors seeking access to their capital
Investors seeking the potential returns that equity markets can provide
Investors seeking a Capital Gains Taxable investment
Investors seeking Capital Protection
Investors seeking an income
Investors seeking Unlimited Investment Returns
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The Kick Out Bond 9
2.3 Indicative Investment Terms of the Bond
Index Option
While the final terms of the Bond will not be known until 12 June 2015, based on market conditions on 7 April 2015, the
Index Option is expected to have the following Key Investment Terms:
Indicative Key Feature
Description
Preference Share linked
Note Issuer
Credit Suisse AG
Guarantor
Credit Suisse AG
Preference Shares Issuer
Andrea Investments (Jersey) PCC
Calculation Agent/Dealer
Credit Suisse International
Investment Term
5 years
Soft Capital Protection
Investors will receive back their initial capital if none of the 4 indices has fallen by 40% or more at the Final
Valuation Date. If one or more of the 4 indices have fallen by 40% or more at the Final Valuation Date, investors
will receive the performance of the worst performing index no matter how much it has fallen.
Underlying Investments
Eurostoxx 50 Index (Bloomberg Code: SX5E Index)
S&P 500 Index (Bloomberg Code: SPX Index)
FTSE 100 Index (Bloomberg Code: UKX Index)
Nikkei 225 Index (Bloomberg Code: NKY Index)
Potential Return
6.30% every 6 months
If all 4 of the Underlying Indices are above their initial level after 6 months, the Bond will mature early, investors will
receive back their initial investment and a return of 6.30%. If not, but if all 4 of the Underlying Indices are above
their initial level after 12 months, the Bond will mature early, investors will receive back their initial investment and a
return of 12.6%. This process continues at each 6 month interval with the return increasing by 6.30% for each
period passed until the return condition is met (i.e. all 4 of the Underlying Indices are above their initial level) or until
the Final Valuation Date as follows:
Potential return after 6 months if return condition is met on 14 December 2015: 6.30% or
Potential return after 1 year if return condition is met on 13 Junel 2016: 12.60% or
Potential return after 18 months if return condition is met on 12 December 2016: 18.90% or
Potential return after 2 years if return condition is met on 12 June 2017: 25.20% or
Potential return after 30 months if return condition is met on 12 December 2017: 31.50% or
Potential return after 3 years if return condition is met on 12 June: 37.80% or
Potential return after 42 months if return condition is met on 12 December 2018: 44.10% or
Potential return after 4 years if return condition is met on 12 June 2019: 50.40% or
Potential return after 54 months if return condition is met on 12 December 2019: 56.70% or
Potential return on Final Valuation Date if return condition is met: 63%
Minimum Return
0%
Maximum Return
63%
Minimum Investment
€25,000
Closing Date
5 June 2015
Strike Date
12 June 2015
Issue Date
19 June 2015
Final Valuation Date
12 June 2020
Maturity Date
19 June 2020
Listing
Luxembourg Stock Exchange
Liquidity
Daily, under normal market conditions and at the discretion of Credit Suisse International.
Taxation
Our understanding is that the potential returns will be subject to Capital Gains Tax (CGT) in the case of
Personal Investors and exempt from taxation in the case of Pension and Post Retirement Investors.
The Kick Out Bond 9
Stocks Option
While the final terms of the Bond will not be known until 12 June 2015, based on market conditions on 9 April 2015, the
Stocks Option is expected to have the following Key Investment Terms:
Indicative Key Feature
Description
Preference Share linked
Certificate Issuer
BNP Paribas Arbitrage Issuance BV
Guarantor
BNP Paribas
Redeemable Preference
Share Linked Certificate
Issuer
BNP Paribas Synergy Limited
Calculation Agent
BNP Paribas Arbitrage SNC
Investment Term
5 years
Soft Capital Protection
Investors will receive back their initial capital if none of the 4 shares has fallen by 40% or more at the Final
Valuation Date. If one or more of the 4 shares have fallen by 40% or more at the Final Valuation Date, investors
will receive the performance of the worst performing share no matter how much it has fallen.
Underlying Investments
Allianz SE-Reg (Bloomberg Code: ALV GY Equity)
HSBC Holdings PLC (Bloomberg Code: HSBA LN Equity)
Philip Morris International Inc (Bloomberg Code: PM UN Equity
Ford Motor Cc (Bloomberg Code: F UN Equity)
Potential Return
14.50% every 6 months. If all 4 of the Underlying Stocks are above 95% of their initial level after 6 months, the
Bond will mature early, investors will receive back their initial investment and a return of 14.50%. If not, but if all 4
of the Underlying Shares are above 95% of their initial level after 12 months , the Bond will mature early, investors
will receive back their initial investment and a return of 29%. This process continues at each 6 month interval with
the return increasing by 14.50% for each period passed until the return condition is met (i.e. all 4 of the Underlying
Indices are above 95% of their initial level) or until the Final Valuation Date as follows:
Potential return after 6 months if return condition is met on 14 December 2015: 14.50% or
Potential return after 1 year if return condition is met on 13 June 2016: 29% or
Potential return after 18 months if return condition is met on 12 December 2016: 43.50% or
Potential return after 2 years if return condition is met on 12 June 2017: 58% or
Potential return after 30 months if return condition is met on 12 December 2017: 72.50% or
Potential return after 3 years if return condition is met on 12 June 2018: 87% or
Potential return after 42 months if return condition is met on 12 December 2018: 101.50% or
Potential return after 4 years if return condition is met on 12 June 2019: 116% or
Potential return after 54 months if return condition is met on 12 December 2019: 130.50% or
Potential return on Final Valuation Date if return condition is met: 145%
Minimum Return
0%
Maximum Return
145%
Minimum Investment
€25,000
Closing Date
5 June 2015
Strike Date
12 June 2015
Issue Date
19 June 2015
Final Valuation Date
12 June 2020
Maturity Date
19 June 2020
Listing
Luxembourg Stock Exchange
Liquidity
Daily, under normal market conditions and at the discretion of BNP Paribas Arbitrage SNC.
Taxation
Our understanding is that the potential returns will be subject to Capital Gains Tax (CGT) in the case of
Personal Investors and exempt from taxation in the case of Pension and Post Retirement Investors.
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The Kick Out Bond 9
Warning: All of the terms outlined in this Brochure are indicative and subject to change. The final terms will
not be known until 12 June 2015.
Warning: If you invest in this product you may lose some or all of the money you invest.
Warning: The value of your investment may go down as well as up.
Warning: The above information represents our understanding of the taxation treatment of the Bond but does
not constitute tax advice. Investors should satisfy themselves independently of the taxation treatment of
the Bond in their particular circumstances.
Warning: Investors should satisfy themselves independently in relation to revenue reporting requirements and
the implications of non-disclosure where required.
Warning: Tax rates and the Revenue’s policy in relation to the taxation treatment of this instrument are subject
to change without notice.
2.4 Sample Return Illustration
Index Option
The table below describes potential returns to investors in the Index Option in example negative, neutral and positive
investment return conditions for investors. The Potential Returns illustrated for each 6 monthly period assume that the
Bond has not matured at an earlier date.
Period
Projected
Investment
Return
Conditions
Projected
Performance
of the Worst
Performing
Underlying Index
Result: Projected Return to Investors
6 Months
Negative
-15%
Continue to end of Year 1
Neutral
-1%
Continue to end of Year 1
Positive
+6%
Investors get capital back and a return of 6.30%.
Negative
-8%
Continue to end of 18 Months
Neutral
+1%
Investors get capital back and a return of 12.60%
Positive
+5%
Investors get capital back and a return of 12.60%
Negative
-20%
Continue to end of Year 2
Neutral
+3%
Investors get capital back and a return of 18.90%
Positive
+5%
Investors get capital back and a return of 18.90%
Negative
-1%
Continue to end of 30 Months
Neutral
+10%
Investors get capital back and a return of 25.20%.
Year 1
18 Months
Year 2
30 Months
Year 3
42 Months
Year 4
54 Months
Maturity
Positive
+35%
Investors get capital back and a return of 25.20%
Negative
-7%
Continue to end of Year 3
Neutral
-2%
Continue to end of Year 3
Positive
+41%
Investors get capital back and a return of 31.50%.
Negative
-18%
Continue to end of 42 Months
Neutral
+8%
Investors get capital back and a return of 37.80%
Positive
+65%
Investors get capital back and a return of 37.80%
Negative
-9%
Continue to end of Year 4
Neutral
+4%
Investors get capital back and a return of 44.10%.
Positive
+13%
Investors get capital back and a return of 44.10%
Negative
-18%
Continue to end of 54 Months
Neutral
-8%
Continue to end of 54 Months
Positive
+12%
Investors get capital back and a return of 50.40%
Negative
-6%
Continue to Final Valuation Date
Neutral
+7%
Investors get capital back and a return of 56.70%
Positive
+82%
Investors get capital back and a return of 56.70%
Negative
-11%
Investors get their capital back.
Neutral
+1%
Investors get capital back and a return of 63%
Positive
+125%
Investors get capital back and a return of 63%
The Kick Out Bond 9
Kick Out Stocks Bonds
The table below describes potential returns to investors in the Stocks Option in example negative, neutral and positive
investment return conditions for investors. The Potential Returns illustrated for each 6 monthly period assume that the
Bond has not matured at an earlier date.
Period
Projected
Investment
Return
Conditions
Projected
Performance
of the Worst
Performing
Underlying Share
Result: Projected Return to Investors
6 Months
Negative
-15%
Continue to end of Year 1
Neutral
-1%
Investors get capital back and a return of 14.50%
Positive
+6%
Investors get capital back and a return of 14.50%
Negative
-8%
Investors get capital back and a return of 29%
Neutral
-1%
Investors get capital back and a return of 29%
Positive
+5%
Investors get capital back and a return of 29%
Negative
-20%
Continue to end of Year 2
Neutral
0%
Investors get capital back and a return of 43.50%
Positive
+15%
Investors get capital back and a return of 43.50%
Negative
-11%
Continue to end of 30 Months
Neutral
+10%
Investors get capital back and a return of 58%
Positive
+35%
Investors get capital back and a return of 58%
Negative
-7%
Continue to the end of Year 3
Neutral
-4%
Investors get capital back and a return of 72.50%
Positive
+41%
Investors get capital back and a return of 72.50%
Negative
-18%
Continue to end of 42 Months
Year 1
18 Months
Year 2
30 Months
Year 3
42 Months
Year 4
54 Months
Maturity
Neutral
+8%
Investors get capital back and a return of 87%
Positive
+65%
Investors get capital back and a return of 87%
Negative
-19%
Continue to end of Year 4
Neutral
-1%
Investors get capital back and a return of 101.50%
Positive
+3%
Investors get capital back and a return of 101.50%
Negative
-18%
Continue to end of 54 Months
Neutral
-9%
Continue to end of 54 Months
Positive
+12%
Investors get capital back and a return of 116%
Negative
-6%
Continue to Final Valuation Date
Neutral
+7%
Investors get capital back and a return of 130.50%
Positive
+82%
Investors get capital back and a return of 130.50%
Negative
-11%
Investors get their capital back.
Neutral
-2%
Investors get capital back and a return of 145%
Positive
+195%
Investors get capital back and a return of 145%
Warning: These figures are estimates only. They are not a reliable guide to the future performance of your
investment.
Warning: Past Performance is not a reliable guide to future performance.
Warning: If you invest in this product you may lose some or all of the money you invest.
Warning: The value of your investment may go down as well as up.
10
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The Kick Out Bond 9
2.5 Soft Capital Protection
Index Option
Investors will receive back their initial capital if none of the 4 indices has fallen by 40% or more at the Final Valuation
Date. If one or more of the 4 indices has fallen by 40% or more at the Final Valuation Date, investors will receive the
performance of the worst performing index no matter how much it has fallen. The table below illustrates the level of
capital returned to investors in example negative, neutral and positive investment return conditions:
Projected
Investment Return
Conditions at Final
Valuation Date
Projected
Performance of
the Worst Performing
Index during the Term
Projected Performance
of the Worst
Performing Index on
the Valuation Date
Projected
Proportion of Initial
Capital returned
to the investor
Very Negative
-65%
-60%
40%
Very Negative
-65%
-30%
100%
Negative
-20%
-10%
100%
Neutral
-10%
+5%
100%
Positive
-4%
+35%
100%
Very Positive
0%
+120%
100%
Stocks Option
Investors will receive back their initial capital if none of the 4 stocks has fallen by 40% or more at the Final Valuation
Date. If one or more of the 4 stocks has fallen by 40% or more at the Final Valuation Date, investors will receive the
performance of the worst performing share no matter how much it has fallen. The table below illustrates the level of
capital returned to investors in example negative, neutral and positive investment return conditions:
Projected
Investment Return
Conditions at Final
Valuation Date
Projected
Performance of
the Worst Performing
Share during the Term
Projected Performance
of the Worst
Performing Share on
the Valuation Date
Projected
Proportion of Initial
Initial Capital returned
to the investor
Very Negative
-85%
-65%
35%
Very Negative
-65%
-35%
100%
Negative
-20%
-10%
100%
Neutral
-10%
+5%
100%
Positive
-4%
+35%
100%
Very Positive
0%
+120%
100%
Warning: These figures are estimates only. They are not a reliable guide to the future performance of your
investment.
Warning: Past Performance is not a reliable guide to future performance.
Warning: If you invest in this product you may lose some or all of the money you invest.
Warning: The value of your investment may go down as well as up.
The Kick Out Bond 9
2.6 Investment Risk
Merrion Solutions considers the Kick Out Indices Bond
to have a risk score of 4 and the Kick Out Stocks
Bond to have a risk score of 5 on its risk scale as
follows:
1
2
3
4
5
6
7
ULTRA
CONSERVATIVE
CONSERVATIVE
Warning: Credit Suisse AG will, under normal
market conditions, and subject to applicable law
and regulations and Credit Suisse AG internal
policy, provide investors with a bid and offer price
on a daily basis for the Note. Credit Suisse
International may determine a bid and offer price
in a different manner than other market
participants and prices can vary. Sometimes this
variance may be substantial. Credit Suisse AG
may be the only market maker in the Note which
may affect liquidity.
CAUTIOUS
PRUDENT
BALANCED
SPECULATIVE
AGGRESSIVE
Warning: If you invest in this product you may
lose some or all of the money you invest.
Warning: The value of your investment can go
down as well as up.
2.7 Liquidity
The underlying Preference Share linked Note and
Certificate of the Index and Stocks Options will be listed
on the Luxembourg Stock Exchange and are tradable
investments (subject to the Warnings below).
Index Option
Credit Suisse AG will, under normal market conditions, and
subject to applicable law and regulations and Credit Suisse
AG internal policy, provide investors with a bid and offer
price on a daily basis for the Note (with a maximum
bid/offer spread of 1%). Credit Suisse International may
determine a bid and offer price in a different manner than
other market participants and prices can vary. Sometimes
this variance may be substantial. Credit Suisse AG may
be the only market maker in the Notes which may affect
liquidity.
Therefore, investors will, in normal market conditions be
able to sell the Note (in denominations of €1,000) at any
time during the term. The price at which the Note can be
sold will be the open market value determined by Credit
Suisse AG which will take fees and charges into account
and can be lower than the Soft Capital Protected amount.
Stocks Option
BNP Paribas Arbitrage SNC endeavours to make a
secondary market in the Preference Share linked
Certificate, subject to it being satisfied that normal market
conditions prevail. Any prices indicated will be dependent
upon factors affecting or likely to affect the value of the
Certificates such as, but not limited to, the remaining time
to the Maturity Date, the outstanding principal amount,
the Issuer's or, if applicable, the Guarantor's credit risk,
the performance and volatility of the underlying asset,
interest rates, exchange rates, credit spreads and any
incidental costs etc. To the extent BNP Paribas Arbitrage
SNC holds Certificates that it can offer and subject to it
being satisfied that normal market conditions prevail, such
prices will have a bid-offer spread no greater than 1.00%.
BNP Paribas Arbitrage SNC may determine a bid and offer
price in a different manner than other market participants
and prices can vary. Sometimes this variance may be
substantial. BNP Paribas Arbitrage SNC may be the only
market maker in the Preference Share linked Certificates
which may affect liquidity.
Therefore, investors will, in normal market conditions be
able to sell the Preference Share linked Certificates at any
time during the term. The price at which the Preference
Share linked Certificates can be sold will be the open
market value determined by BNP Paribas Arbitrage SNC
which will take fees and charges into account and can be
lower than the initial amount invested.
Warning: BNP Paribas Arbitrage SNC may
determine a bid and offer price in a different
manner than other market participants and prices
can vary. Sometimes this variance may be
substantial. BNP Paribas Arbitrage SNC may be
the only market maker in the Preference Share
linked Certificate which may affect liquidity.
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The Kick Out Bond 9
Warning: No representation is made as to the
existence of a market for the underlying
Preference Share linked Notes or Certificates.
Credit Suisse International (in the case of the
Index Option) and BNP Paribas Arbitrage SNC (in
the case of the Stocks Option) will endeavor to
make a secondary market in the Preference Share
linked Note & Certificate, subject to both banks
being satisfied that normal market conditions
prevail. Any prices indicated will be dependent
upon factors affecting or likely to affect the value
of the Preference Share linked Notes or
Certificates such as, but not limited to, the
remaining time to the Maturity Date, the
outstanding principal amount, the Issuer's or, if
applicable, the Guarantor's credit risk, the
performance and volatility of the underlying
asset, interest rates, exchange rates, credit
spreads, and any incidental costs.
Warning: Deductions for charges and expenses are
not made uniformly throughout the life of the
product, but are loaded disproportionately onto
the early period. If an investor sells the Bond
prior to the end of the 5 Year term, the practice
of front-end loading will impact on the amount of
money that the investor receives. The investor
may not get back the full amount they invested.
Warning: If you invest in this product you may
lose some or all of the money you invest.
Warning: The value of your investment can go
down as well as up.
2.8 Fees & Charges
The Fees & Charges associated with the Bond are fully
reflected in the terms. This means that they are built into
the price paid for the Bond.
The parties involved in the Bond are expected to receive
the following indicative commissions:
1. Merrion Solutions: 5%.
2. Financial Brokers: Out of this commission amount,
Merrion Solutions will pay 2.5% of the amount invested to
its appointed Financial Brokers for introducing clients to
Merrion Solutions to invest in the Bond.
The total indicative commission payable to the parties
involved in the Bond is 5% of the amount initially invested
(based on market conditions on 6 February 2015). This
commission amount will be reflected in the quoted price
of the Bond if sold prior to maturity.
Pension and Post Retirement investors making an
investment through their Friends First Self Directed Plan
will have a transaction fee of €75 deducted from their
account when investing in the plan and a further €75
deduction if they sell the investment prior to any of the
normal maturity dates.
Warning: Deductions for charges and expenses are
not made uniformly throughout the life of the
product, but are loaded disproportionately onto
the early period. If an investor sells the Bond
prior to the end of the 5 year term, the practice
of front-end loading will impact on the amount of
money that the investor receives. The investor
may not get back the full amount they invested.
2.9 Administrative Process
All of the Key Features outlined in this document are
indicative and the final investment terms will not be known
until 12 June 2015. Investors will be advised of the final
terms in the Confirmation Bond issued within 5 business
days of the Issue Date on 19 June 2015. Your investment
will only proceed if the Potential Return every 6 months
is at or above 6% in the case of the Index Option and
12.5% in the case of the Stocks Option.
The Bond has been designed for Personal, Pension and
Post Retirement Investors. Pension and Post Retirement
Investors can invest via the following types of schemes:
• Self Invested or Self Directed Insured Pension Schemes.
• Self Invested or Self Directed Insured Approved
Retirement Funds (ARFs) and Approved Minimum
Retirement Funds (AMRFs).
• Small Self Administered Pension Schemes (SSAPs).
• Self Administered ARFs and AMRFs.
• Self Administered PRSAs.
• Self Invested or Self Directed Insured PRSAs
• Self Invested or Self Directed Insured Buy out Bonds or
Pre Retirement Bonds.
Investors in the Bond must invest via a Merrion Solutions
myfunds account (except investors via insured pension
arrangements). Investors must complete and sign the
Application Form below. Your Financial Broker will assist
you in completing your Application Form and in submitting
the required documentation.
The Kick Out Bond 9
2.10 What happens if I die before the Bond Matures?
In the event of the death of a sole investor or a surviving
joint investor, the Bond may be held by the administrators
of the estate until maturity. Alternatively, the Bond may
be sold prior to Maturity, subject to normal probate
regulations, at its realisable value which may be lower
than the original amount invested and lower than the Soft
Capital Protected amount. The proceeds from the sale of
the Bond as a result of death will be paid to your Merrion
myfunds account or in the case of an insured pension or
post retirement investor, to the investing life company.
Warning: Deductions for charges and expenses
are not made uniformly throughout the life of the
product, but are loaded disproportionately onto
the early period. If an investor sells the Bond
prior to the end of the 5 year term as a result of
death, the practice of front-end loading will
impact on the amount of money that the investor
receives. The investor may not get back the full
amount they invested.
2.11 Taxation in the Republic of Ireland
It is our understanding that the Potential Return will be
subject to Capital Gains Tax (CGT) in the case of Personal
Investors and exempt from taxation in the case of Pension
and Post Retirement Investors. However, the taxation
treatment of the Bond will be based on Revenue’s policy
at the time of the realising of any gain and on the
individual circumstances of each investor.
Warning: The above information represents our
understanding of the taxation treatment of the
Bond but does not constitute tax advice.
Investors
should
satisfy
themselves
independently of the taxation treatment of the
Bond in their particular circumstances.
Warning: Investors should satisfy themselves
independently in relation to revenue reporting
requirements and the implications of nondisclosure where required.
Warning: Tax rates and the Revenue’s policy in
relation to the taxation treatment of this
instrument are subject to change without notice.
Complaints Procedure
Merrion Solutions aims to provide the highest quality of customer service at all times. If you have any complaint, please
contact Merrion Compliance, 2nd Floor, Guild House, Guild Street, IFSC, Dublin 1.
If you are dissatisfied with the outcome of our efforts to resolve your complaint you may refer your complaint to the Financial
Services Ombudsman’s Bureau, 3rd Floor, Lincoln House, Lincoln Place, Dublin 2.
Lo Call: 1890 88 20 90; Telephone (01) 6620899; Fax (01) 6620890. e-mail: [email protected]
14
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The Kick Out Bond 9
3. General Risk Warnings
Warning: If Credit Suisse AG (in the case of the Index Option) or BNP Paribas (in the case of the Stocks Option)
defaults or goes bankrupt you may lose some or all of your investment and because you are investing in a
Preference Share linked Note or Certificate issued by Credit Suisse AG (in the case of the Index Option) and
BNP Paribas Arbitrage Issuance BV (in the case of the Stocks Option) and not a bank deposit, you will not be
eligible for compensation under any Deposit Guarantee or Deposit Compensation Scheme.
Warning: This Bond is not Capital Protected. If you invest in this Bond you can lose some or all of the money
you invest.
Warning: Investors will benefit from the Potential Return if the predefined return condition is met. Investors
will not benefit from any additional positive investment performance generated by the Underlying Investments
over and above the Potential Return levels provided in advance. Investors will not benefit from any dividends
on the Underlying Investments.
Warning: The Preference Share linked Note is a debt obligation of Credit Suisse AG, and all payments on the
Note, including the repayment of principal, are subject to the credit risk of Credit Suisse AG. The Note is not
a bank deposit and is not insured by any governmental agency, nor are they obligations of, or guaranteed by,
a bank. Credit ratings can be a useful way to compare the credit risk associated with different product
providers and related investments. Credit ratings are assigned by independent companies known as ratings
agencies and reviewed regularly. The guarantor of the Note comprising the Index Option of this investment
will be Credit Suisse AG. Credit Suisse AG’s long term credit rating as at 7 April 2015 is A1 from Moody’s (its
equivalent rating by Standard and Poor’s is A and from Fitch is A). You should note that Moody’s rate
companies from Aaa (Most Secure/Best) to C (Most Risky/ Worst), while Standard & Poor’s and Fitch rate
companies from AAA (Most Secure/Best) to D (Most Risky/ Worst). Each of Moody’s, Standard & Poor’s and
Fitch are independent ratings agencies. These credit ratings are reviewed on a regular basis and are subject
to change by these agencies.
Warning: The Preference Share linked Certificate underlying the Stocks Option of the Bond is a debt obligation
of BNP Paribas and all payments on the Preference Share linked Certificates, including the repayment of
principal, are subject to the credit risk of BNP Paribas. Credit ratings can be a useful way to compare the
credit risk associated with different product providers and related investments. Credit ratings are assigned
by independent companies known as ratings agencies and reviewed regularly. The guarantor, BNP Paribas’
long term credit rating as at 8 April 2015 is A1 from Moody’s (its equivalent rating by Standard and Poor’s is
A+ and from Fitch is A+). You should note that Moody’s rate companies from Aaa (Most Secure/Best) to C
(Most Risky/ Worst), while Standard & Poor’s and Fitch rate companies from AAA (Most Secure/Best) to D
(Most Risky/ Worst). Each of Moody’s, Standard & Poor’s and Fitch are independent ratings agencies. These
credit ratings are reviewed on a regular basis and are subject to change by these agencies.
Warning: The Bond is for Distribution by way of a Private Offer in the Republic of Ireland only.
Warning: Investors in the Bond will not benefit from dividends or coupons from the Underlying Investments
and do not directly invest in these shares.
Warning: The Underlying Investments can be volatile.
Warning: Investors should not read this document alone but should also read the associated prospectus for
each Bond Option which is obtainable from your Financial Broker where the Terms & Conditions and a full list
of Warnings are provided.
Warning: Merrion Solutions has not provided any financial, legal, regulatory, tax, accounting or investment
advice and does not accept any responsibility for the appropriateness or suitability of the Bond for any
investor.
Warning: This product may be affected by changes in currency exchange rates.
Potential investors are urged to consult with their legal, regulatory, investment, accounting, tax and other
advisors with regard to any proposed or actual investment in the Bond and to review the Base Prospectus.
The Kick Out Bond 9
Disclaimers
EURO STOXX 50® Price Index (the "Index")
STOXX Limited ("STOXX") and its licensors (the "Licensors") have no relationship to the Issuer, other than the licensing
of the Index and the related trademarks for use in connection with the Securities.
STOXX and its Licensors do not:
• Sponsor, endorse, sell or promote the Securities.
• Recommend that any person invest in the Securities or any other securities.
• Have any responsibility or liability for or make any decisions about the timing, amount or pricing of the Securities.
• Have any responsibility or liability for the administration, management or marketing of the Securities.
• Consider the needs of the Securities or the owners of the Securities in determining, composing or calculating the Index
or have any obligation to do so.
STOXX and its Licensors will not have any liability in connection with the Securities. Specifically,
• STOXX and its Licensors do not make any warranty, express or implied and disclaim any and all warranty about:
• The results to be obtained by the Securities, the owner of the Securities or any other person in connection with the
use of the Index and the data included in the Index;
• The accuracy or completeness of the Index and its data;
• The merchantability and the fitness for a particular purpose or use of the Index and its data;
• STOXX and its Licensors will have no liability for any errors, omissions or interruptions in the Index or its data;
• Under no circumstances will STOXX or its Licensors be liable for any lost profits or indirect, punitive, special or
consequential damages or losses, even if STOXX or its Licensors knows that they might occur. The licensing agreement
between the Issuer and STOXX is solely for their benefit and not for the benefit of the owners of the Securities or any
other third parties.
S&P 500® Index
The "S&P 500® Index" (the “Index”) is a product of S&P Dow Jones Indices LLC (“SPDJI”), and has been licensed for use
by Credit Suisse International. Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial
Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and
these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Credit Suisse International.
The Securities are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, any of their respective affiliates
(collectively, “S&P Dow Jones Indices”). S&P Dow Jones Indices makes no representation or warranty, express or implied,
to the owners of the Securities or any member of the public regarding the advisability of investing in securities generally
or in the Securities particularly or the ability of the S&P 500® Index to track general market performance. S&P Dow
Jones Indices’ only relationship to Credit Suisse International with respect to the S&P 500® Index is the licensing of the
Index and certain trademarks, service marks and/or trade names of S&P Dow Jones Indices and/or its licensors. The S&P
500® Index is determined, composed and calculated by S&P Dow Jones Indices without regard to Credit Suisse
International or the Securities. S&P Dow Jones Indices have no obligation to take the needs of Credit Suisse International
or the owners of the Securities into consideration in determining, composing or calculating the S&P 500® Index. S&P
Dow Jones Indices are not responsible for and have not participated in the determination of the prices, and amount of
the Securities or the timing of the issuance or sale of the Securities or in the determination or calculation of the equation
by which the Securities are to be converted into cash, surrendered or redeemed, as the case may be. S&P Dow Jones
Indices have no obligation or liability in connection with the administration, marketing or trading of the Securities. There
is no assurance that investment products based on the S&P 500® Index will accurately track index performance or provide
positive investment returns. S&P Dow Jones Indices LLC is not an investment advisor. Inclusion of a security within an
index is not a recommendation by S&P Dow Jones Indices to buy, sell, or hold such security, nor is it considered to be
investment advice.
S&P DOW JONES INDICES DOES NOT GUARANTEE THE ADEQUACY, ACCURACY, TIMELINESS AND/OR THE
COMPLETENESS OF THE INDEX OR ANY DATA RELATED THERETO OR ANY COMMUNICATION, INCLUDING BUT NOT
LIMITED TO, ORAL OR WRITTEN COMMUNICATION (INCLUDING ELECTRONIC COMMUNICATIONS) WITH RESPECT
THERETO. S&P DOW JONES INDICES SHALL NOT BE SUBJECT TO ANY DAMAGES OR LIABILITY FOR ANY ERRORS,
OMISSIONS, OR DELAYS THEREIN. S&P DOW JONES INDICES MAKE NO EXPRESS OR IMPLIED WARRANTIES, AND
EXPRESSLY DISCLAIMS ALL WARRANTIES, OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE
OR AS TO RESULTS TO BE OBTAINED BY CREDIT SUISSE INTERNATIONAL, OWNERS OF THE SECURITIES, OR ANY OTHER
PERSON OR ENTITY FROM THE USE OF THE INDEX OR WITH RESPECT TO ANY DATA RELATED THERETO. WITHOUT
LIMITING ANY OF THE FOREGOING, IN NO EVENT WHATSOEVER SHALL S&P DOW JONES INDICES BE LIABLE FOR ANY
INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES INCLUDING BUT NOT LIMITED TO, LOSS OF
PROFITS, TRADING LOSSES, LOST TIME OR GOODWILL, EVEN IF THEY HAVE BEEN ADVISED OF THE POSSIBLITY OF
SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT LIABILITY, OR OTHERWISE. THERE ARE NO THIRD PARTY
BENEFICIARIES OF ANY AGREEMENTS OR ARRANGEMENTS BETWEEN S&P DOW JONES INDICES AND CREDIT SUISSE
INTERNATIONAL, OTHER THAN THE LICENSORS OF S&P DOW JONES INDICES.
16
17
The Kick Out Bond 9
FTSE 100 Index
The Securities are not in any way sponsored, endorsed, sold or promoted by FTSE International Limited ("FTSE") or the
London Stock Exchange Group companies ("LSEG") (together the "Licensor Parties") and none of the Licensor Parties
make any claim, prediction, warranty or representation whatsoever, expressly or impliedly, either as to (i) the results to
be obtained from the use of the FTSE 100 Index (the "Index") (upon which the Securities are based), (ii) the figure at which
the Index is said to stand at any particular time on any particular day or otherwise, or (iii) the suitability of the Index for
the purpose to which it is being put in connection with the Securities. None of the Licensor Parties have provided or will
provide any financial or investment advice or recommendation in relation to the Index to the Issuer or to its clients. The
Index is calculated by FTSE or its agent. None of the Licensor Parties shall be (a) liable (whether in negligence or otherwise)
to any person for any error in the Index or (b) under any obligation to advise any person of any error therein. All rights in
the Index vest in FTSE. "FTSE®" is a trade mark of LSEG and is used by FTSE under licence.
Nikkei 225 Index
The Issuer or one of its affiliates and an affiliate of NIKKEI have entered into a non-exclusive license greement providing
for the license to the Issuer, in exchange for a fee, of the right to use the Nikkei 225 Index in connection with the Products.
The Nikkei 225 Stock Average is the intellectual property of NIKKEI (the "Sponsor"). "Nikkei", "Nikkei Stock Average" and
"Nikkei 225" are the service marks of the Sponsor. The Sponsor reserves all rights, including copyright, to the Nikkei 225
Index. These Notes are not in any way sponsored, endorsed, sold or promoted by the Osaka Securities Exchange, the TSE
or the Sponsor and none of the Osaka Securities Exchange, the TSE and the Sponsor makes any warranty or representation
whatsoever, express or implied, as to the results to be obtained from the use of the Nikkei 225 Stock Average or the level
at which the Nikkei 225 Stock Average stands at any particular time on any particular day or otherwise. The Nikkei 225
Stock Average is compiled and calculated solely by the Sponsor. None of the Osaka Securities Exchange, the TSE and the
Sponsor shall be liable (whether in negligence or otherwise) to any person for any error in the Nikkei 225 Stock Average
and none of the Osaka Securities Exchange, the TSE and the Sponsor shall be under any obligation to advise any person
of any error therein.
In addition, NIKKEI gives no assurance regarding any modification or change in any methodology used in calculating the
Nikkei 225 Stock Average and is under no obligation to continue the calculation, publication and dissemination of the
Nikkei 225 Stock Average.
The Kick Out Bond 9
Bond Application Form
Please note that by signing this Application Form, you are confirming that you have read and understood the material in this Brochure, the
base prospectus and have received advice from your Financial Broker in relation to the suitability of this investment for you. If you are
unclear about any of the information presented in this Brochure, the base prospectus, the Merrion Stockbrokers Terms of Business or
about the suitability of this investment for you, please seek further advice before completing this Application Form.
Please complete Section A, B or C and the Declaration of the following document in BLOCK CAPITALs and return along with your
cheque/draft made payable to Merrion Stockbrokers Limited (or the investing life company where an investment is made on behalf of a
Self Directed or Self Invested Insured Pension Plan).
I/We hereby apply for the Kick Out Bond 9 in the name(s) of:
A. Personal Investors
Primary Name:
Date of Birth:
Address:
Occupation:
Email Address:
Telephone Number (Home):
Mobile Number:
Secondary Name:
Date of Birth:
Address:
Occupation:
Email Address:
Telephone Number (Home):
Mobile Number:
If your investment is being made together with another person you acknowledge that the investment will be a joint investment between the persons named herein.
B. Pension/Post Retirement Investors
Scheme Name:
Pre or Post Retirement:
Scheme Provider Name:
Scheme Type:
(e.g. Small Self Administered Scheme, Self Administered PRSA, Self Invested/Self Directed)
Policy/Plan/Account No:
Revenue Tax Reference No:
Scheme Provider Address:
C. Company or Credit Union Investors
Entity Name:
Credit Union/Company Registration No:
Address:
Primary Contact Name:
Primary Contact Number
Telephone Number:
Fax Number:
Email Address:
Website Address:
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17
The Kick Out Bond 9
I/We wish to invest €
in the Kick Out Bond 9 (Index Option)
I/We wish to invest €
in the Kick Out Bond 9 (Stocks Option)
(€25,000 minimum in each of the 2 Bond Options in denominations of €1,000) and to open
an an Execution Only myfunds account to do so.
Investor Type (please tick the appropriate box):
Personal Investor
Self Administered Pension or Post Retirement Scheme
Revenue No:
Self Invested/Self Directed Pension or Post Retirement Plan
Plan No:
Company Investor
Company No:
Credit Union
Credit Union No:
Other
Please specify:
Investor Declaration: I/We declare that (i) the details above are correct, that I/We are over 18 and confirm that I/We understand and
accept the Indicative Key Features of the Bond set out in this Brochure and the base prospectus. I/We confirm that the Indicative Key
Features of the Bond are consistent with my/our Investment Objectives and Risk Profile. I/We understand that the indicative terms
outlined in this document are subject to change and that the final terms will not be known until 12 June 2015. I/We confirm that we
understand that this is not a Capital Protected Investment and that I/We can lose some or all of the amount I/we invest. I/We understand
that the investment will not be deemed to have been made until the application has been accepted and that, if and when accepted, the
investment will commence on 19 June 2015.
Where applicable, I/We hereby request and authorise you: (a) place my/our Investment Amount in a Client Asset Account in the name of
Merrion Stockbrokers Limited.
Primary Signature:
Date:
Secondary Signature:
Date:
Warning: This Bond is not Capital Protected. If you invest in this product you may lose some or all of the money you invest.
Warning: The value of your investment can go down as well as up.
Financial Broker Declaration: I/We confirm the following:
Having conducted a full review of this investor’s financial circumstances, that this Bond is consistent with the investor’s Investment
Objectives and Risk Profile. That we have advised the investor that this Bond is not Capital Protected and that we have advised each
investor that they can lose some or all of the amount invested. We have complied in full with the Anti Money Laundering (AML) and
combating terrorist system that applies to all designated bodies with effect from 15 July 2010. Where an investor has been identified
as potentially vulnerable, we have followed our internal procedures in this regard.
Firm Name:
Print Financial Broker Name:
Financial Broker Signature:
Date:
The Kick Out Bond 9
myfunds Application Form
Merrion Solutions is a division of Merrion Stockbrokers Limited. Merrion Stockbrokers Limited is regulated by the Central Bank of
Ireland. Merrion Stockbrokers Limited is a member firm of the Irish Stock Exchange and the London Stock Exchange.
Please complete Section A, B or C and Sections D & E of the following document in BLOCK CAPITALS
A. Personal Accounts
Primary Name:
Date of Birth:
Address:
Occupation:
Email Address:
Telephone Number (Home):
Mobile Number:
Secondary Name:
Date of Birth:
Address:
Occupation:
Email Address:
Telephone Number (Home):
Mobile Number:
Joint Account Mandate (if applicable):
Investment Instruction
Merrion will be entitled to act on the investment instructions of any of the named parties to this account, unless otherwise directed in writing.
Bank Transfers/Cheque Requests (Please tick one box for joint accounts)
We confirm that any instruction regarding the transfer of funds (including to a third party) can be accepted by Merrion from any of the
named parties to this application.
OR
We confirm that any instructions regarding the transfer of funds (including to a third party) can only be accepted by Merrion when
instructed by all of the named parties to this application.
Investor 1:
Signed:
Date:
Investor 2:
Signed:
Date:
Authorised Signatory: (if applicable)
Print Name of Authorised Signatory:
Date:
Relationship to above account:
B. Pension/Post Retirement Account
Scheme Name:
Scheme Provider Name:
Pre or Post Retirement:
Scheme Type:
(e.g. Small Self Administered Scheme, Self Administered PRSA, Self Invested/Self Directed)
Policy/Plan/Account No:
Revenue Tax Reference No:
Scheme Provider Address:
C. Company/Credit Union Accounts
Corporate Mandate
It was resolved that:
Merrion Stockbrokers Limited (Merrion) is hereby requested to open one or more accounts in the name of
(hereunder called the “client”) and is hereby authorised to act on instructions relating to the accounts, affairs or transactions of the
client provided that they are provided in writing, by telephone, fax or email on behalf of the client by any of the following:
Director/Authorised Signatory Name (Block Capitals):
Specimen Signature:
A
B
Please provide 2 authorised signatories but note that Merrion may accept instructions from either party.
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The Kick Out Bond 9
We undertake that:
1. Merrion will be informed in writing of any amendments to the schedule of authorised signatories or mandate powers. Copies of
amending instructions to be provided to Merrion in respect of all such changes.
2. Merrion has been supplied with the appropriate account application form signed in accordance with the resolution above
incorporating the terms of business to the operation of the account and under which the client shall be bound.
3. This resolution has been communicated to Merrion and will remain in force until an amending resolution shall be passed by the
Board of the aforementioned Company and a copy thereof certified by the Chairperson of the Meeting shall be communicated to
Merrion.
I certify the above to be a true copy of the original Resolution duly passed by the Board of the aforementioned Company at a
meeting held on
/
/
Chairperson/Secretary:
Date:
ALL ACCOUNTS
D. Bank Details (this is required to make payments to your account):
Name of Bank & Branch:
Account Name:
Sort Code:
Account Number:
IBAN:
BIC:
Investment Experience (provided to assess appropriateness of investment):
Do you have relevant experience transacting in equities, corporate bonds, unquoted investments,
government bonds, derivatives (including Contracts for Differences) or any other investment instruments?
If yes, please provide the following:
Transaction Type and Number of Years Experience:
Type of instruments you have transacted in (e.g. equities, bonds etc.):
Average transaction size:
Frequency of Transactions:
Details of qualifications / memberships of professional bodies which may be relevant:
Any other information which may be relevant (e.g. occupation, other educational experience etc.):
Yes
No
The Kick Out Bond 9
E.
FATCA
The Foreign Account Tax Compliance Act (FATCA) is an initiative introduced by the US government aimed at combating tax evasion by US
citizens, US tax resident individuals/entities and certain entities with US controlling persons, holding assets or investments through foreign
accounts.
The Irish government signed an Inter-Governmental Agreement (IGA) with the US government, under which the Irish government agreed to
apply the provisions of FATCA. The provisions of the IGA have been incorporated into Irish law.
Under FATCA, financial institutions in Ireland are obliged to obtain and when required report specified information in relation to certain
accounts held by US citizens, US tax resident individuals/entities and certain entities with US Controlling Persons to the Irish Revenue for
onward transmission to the US Internal Revenue Service (IRS). For more information on FATCA see www.revenue.ie or www.irs.gov.
Please complete the sections below as directed. Please note that in certain circumstances we may be obliged to share this information with the
relevant tax authority.
Individual Self-certification – to be completed by individual investors, including joint holders.
Declaration of U.S. Citizenship or U.S. Tax Residence
Please tick either (a) OR (b) and provide the necessary information.
(a)
I confirm that I am a U.S. Citizen and/or resident in the U.S. for tax purposes and my U.S federal taxpayer identifying number
is as follows:
U.S. TIN:
OR
(b)
I confirm that I am NOT a U.S. Citizen or resident in the U.S. for tax purposes.
Entity Self-certification – to be completed by all entity investors – corporate, financial institutional, nominees etc.
Declaration of U.S. Citizenship or U.S. Tax Residence
Please tick either (a) OR (b) and provide the necessary information.
(a)
I confirm that the entity is a Specified U.S. Person and its U.S federal taxpayer identifying number is as follows:
U.S. TIN/GIIN:
OR
(b)
I confirm that the entity is NOT a Specified U.S. Person.
F. Declarations
You are signing below that you have received, read and understood our Terms of Business. If you are not clear on any of the provisions in our
Terms of Business, please do not sign below before discussing with your Financial Broker.
I/We accept that I/we have received, read and understand your Terms of Business and the conditions governing the application and agree and
consent to be bound by them.
I/We accept that we are receiving an execution-only service from Merrion and will not be receiving any advice or any assessment of suitability
from Merrion in relation to any of my investments.
I/We accept that I/we am/are opening this account for the sole purpose of the execution of the order to buy the Kick Out Bond 9. I/We have not
received any advice from Merrion in relation to this Execution Only Account.
I/We confirm that the information provided in this Application Form is true and correct and I/we undertake to inform you of any material
changes to my/our circumstances.
Under the Data Protection (Amendment) Act 2003, I/we agree that the information provided by me/us may be held by Merrion and used for the
purposes registered under the Data Protection (Amendment) Act 2003, including general business purposes, credit decisions and marketing.
I/We confirm and accept my/our agreement and consent to your policies outlined in the Terms of Business including, but not limited to, those
listed below:
Section 4 – Margined/Leveraged Transactions
Section 6 – Client Cash/Investments
Section 7 – Custody of your Investments
Section 10 – Lien & Default Remedies
Section 11 – Conflicts of Interest
Section 12 – Aggregation of Orders
Section 18 – Order Execution Policy
Investor 1:
Signed:
Date:
Investor 2:
Signed:
Date:
Authorised Signatory: (if applicable)
Print Name of Authorised Signatory:
Date:
Relationship to above account:
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Merrion Solutions,
2nd Floor, Guild House
Guild Street, IFSC, Dublin 1.
www.merrionsolutions.com
Merrion Solutions is a division of Merrion Stockbrokers Limited. Merrion Stockbrokers Limited is regulated by the Central
Bank of Ireland. Merrion Stockbrokers Limited is a member of the Irish Stock Exchange and the London Stock Exchange.